European shares slip as Dialog dives while Shell slides

LONDON, July 28 (Reuters) - European shares retreated on
Thursday, weighed down by some weak corporate updates out from
the likes of Dialog Semiconductor and oil major Royal
Dutch Shell.

The pan-European STOXX 600 index and the similar
FTSEurofirst 300 were both down by 0.3 percent in early
session trading.

Dialog dropped by 10 percent, the worst-performing stock on
the STOXX 600 index, after the German company cut its 2016 sales
outlook, while Shell fell by 4 percent after it reported a slump
in profits.

Shares in British bank Lloyds also fell 3.4 percent
after Lloyds warned of a likely drop in demand caused by
Britain's vote to quit the European Union and added it would
accelerate its cost-cutting plan to offset the more testing
economic environment.

The STOXX 600 has rebounded by around 10 percent from a low
point reached on June 27 after last month's shock Brexit vote,
but it remains down by around 7 percent so far in 2016.
(Reporting by Sudip Kar-Gupta; Editing by Vikram Subhedar)